2004 (1) TMI 695

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....fter referred to as 'the Corporation'). The appellant Corporation had issued notices to the respondents for payment of service charges for providing various services like water supply, street lighting, drainage and approach roads to the land and buildings in the municipal area. However, the respondents did not make any payment contending that the respondent-Department, being of Central Government, the properties owned by them are exempt from all taxes. Several demand notices, without any result, culminated in the notice dated 24.10.2000. Being aggrieved by the aforesaid notice, the respondents had taken the matter before the High Court, which was allowed and the aforesaid notice was set aside. The High Court, having noticed the earl....

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.... Amount 1. General Post Office & Telegraph Office & Quarters New/XIII, Amritsar 1.4.67 2,33,296.65 to 31.3.2K 2.  Post Office, Kt. Mohar Singh, Amritsar  do 29,173.80 3.  Post Office, KT Bhai Sant Singh do 26,298.00 4. Post Office, Durgiana Mandi New/XVI, Amritsar do 18,336.47 5.  Post Office, Chhoharta, New XXII, Amritsar do  17,036.42 6.  Post Office, Hide Market New/XV, Amritsar do 14,492,95 7. Post Office, KT. Sher Singh, New/XII, Amritsar do 38,114.41 8.  Post Office, Kairon Market New/1, Amritsar  do 39,011.36 9. Post Office, Chowk Phagwara, Amritsar  do 34,845.50 4,51,105.56 &n....

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....e charges by public auction. Encl: As above Sd./- (Gurwaryam Singh) Joint Commissioner, Municipal Corporation, Amritsar Exercising the powers of Commissioner Municipal Corporation, Amritsar." Article 285(1) provides that the property of the Union shall, save in so far as Parliament may by law otherwise provide, be exempt from all taxes imposed by a State or by any authority within a State. As observed from the impugned notice, the whole basis of the demand notice was in pursuance of the letters/circulars issued by Government of India, Ministry of Finance being Nos. 14[1]-P/52/1 dated 10.5.54 and 14(7)- P/65 dated 29.3.67. It is argued by Mr. Mahabir Singh, learned counsel that the Corporation is justified and entitled f....

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.... separately. It is also categorically averred that no other specific services are being provided to the respondents for which the tax in the shape of service charges can be levied and realized from the respondents. There is no provision in the Municipal Corporation Act for levying service charges. The only provision is by way of tax. Undisputedly, the appellant-Corporation is collecting the tax from general public for water supply, street lighting and approach roads etc. Thus, the "tax" was sought to be imposed in the garb of "service charges". The interplay of the constitutional and legal provisions being well cut and well defined, it was clearly not within the competence of the Corporation to impose tax on the property of the Union of Ind....